Nerdistan

When Henry Kravis and George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with the support of the First Chicago Corporation, the firm’s focus was in bootstrap buyouts. But they have assembled a unique venture which focuses not simply on how much profit they can produce, but also on how environmentally aware each of their companies are.

KKR’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) joined forces last year, with the intention of making green business practices a widely accepted concept. Their mission is to offer encouragement to their associated companies in opposing environmental threats e.g. toxic waste as well as any irresponsible water consumption.

Eco-efficiency (the phrase was initially propagated by the World Business Council for Sustainable Development WBCSD) constitutes the framework for their mission, through applying techniques like reducing the dispersion of toxic chemicals, using clean energy and recycling programs. Although the program was a colossal success, no-one realized how far reaching the effects truly were until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, examined the profits for the first year.

Ken found out that using eco-efficiency wasn’t only helping the environment, but additionally it was saving business concerns a great deal of money, and so the program became virtually an instant success. At the time of writing, KKR and Ken Mehlman have almost each and every business in their portfolio participating in eco-efficiency. Still, with a 2009 portfolio with an estimated value of $86,000,000,000, you can be sure that this wasn’t an easy feat.

The Green Portfolio project has developed beyond its initial purpose and now includes new ventures. The Climate Corps Program set up by the EDF is just one of these, it advances cost-efficient, planet friendly procedures to MBA interns.

KKR and Ken Mehlman have made the effort to formulate a series of metrics and other relevant systems that oversee various resources. These metrics let management to track their progress and identify any areas which may need some work.

Henry Kravis, the KKR, and the Environmental Defense Fund are visionaries in the business world. So, in conclusion, these systems have made green business practice not only viable, but commercially desirable, and their novel ideas are setting a new standard in today’s community.